Beijer Ref AB (publ)

Hi everyone, Christopher and Joel here. Welcome to Q1 2025 report. So we'll get straight into some of our slides and then we'll finish off as usual with a Q&A. so uh summarizing uh q1 um from from our point of view a good quarter uh across the globe um and part of the heading of course was a very very good eps growth and we'll come back to that uh but a total sales growth of 16 percent uh while the organic growth was four percent uh and pretty stable or good across the globe us we'll come back to that and then may and apec we continue to have good growth from acquisition which of course is part of the the business model which we will continue going forward with um so all in all uh we would say a stable good first quarter um especially with some uncertain times here it i would say it shows the model continues to be uh very good in even in these times And then on the EBITDA, a growth of 13% with stable margins compared to last year. We'll come back a little bit more on the different regions, but 9.4%. So happy with the margin development in Q1. Also cash flow positive. Of course, the people who knows Bayer F in details, usually Q1 and Q2 is an inventory and accounts receives a build up and then we usually flush through cash flow in Q3 and Q4. So I would say still a good and stable cash flow for being Q1. So happy with that as well. And then an EPS growth of 20%, which is very happy about on there. And then, as you know, we closed the Cool Fuel acquisition beginning of the year, the leading HVAC distributor in Hungary. So all in all, in the total, good growth, good margins and especially good profit growth in the quarter. Okay, moving on to the different segments. Coming back to the word good and stable in all segments of positive growth in their HVAC 6% growth, which is also across the globe, I would say. Stable in the commercial refrigeration plus 2%, which is a decent level in that product category. And then OEM, 3%, which is a little bit lower than what we usually have in that segment. So I'm sure I'll get a question or two, but we'll have the same answer. We see the order book coming up very good here, so we expect that growth to accelerate as we go through the year. So it should be nice growth there as we move into the next couple quarters. Okay, moving on to EMEA. Growth of 14% driven by the HVAC, of course, related to the acquisition we've done over the last 12 months on Gia Group and Cool4U. Other than that, it continues to be a stable market with good growth in Eastern Europe. Africa has been developing very well for the first time in a couple of years. That's nice. And then stable market in the Nordics and Central Europe and continue to be weaker in Southern Europe, especially. And also worth mentioning, of course, when you talk about EMEA and North America, it is pre-season time, especially in the HVAC segments. Of course, it's more bigger quarters ahead as we move into Q2 and Q3. The OM segment we talked about, but we see that ramping up fairly nicely. And I know I've been talking the last couple of quarters about good quoting levels. We see the orders now building in the backlog. So it should be improving as we go through the year. And then if you look at the different margins, stable margins in the region at a good level for being Q1. So all in all, I mean, we'll come back to that, another stable quarter with solid margins in EMEA. And we look forward to moving into the high season here as things start heating up for Bayreuth. Then moving over to APAC, APAC continues to... do very well, both on sales and the margin evolution. I think you've seen it now for some quarters. So we are in a good position. for sure in APAC and good markets in especially Australia and taking market share for sure in this region and been doing for quite some time and also driving the margin in there. So we did have in March a cyclone that did limit sales for three to four days. uh i will expect to pick that pick that up not not in uh q2 but over the rest of the year as things needs to get prepared so We're very happy with the development in there. And we also, maybe worth mentioning on this slide, we did a small acquisition related to securing some more quotas for refrigerants going forward. So very strategic for us, no major impact on the business, but puts us in a good position to continue to drive the market share evolution in especially Australia. moving on to uh to the us um solid uh six percent organic growth and a very good plus 31 percent uh growth together with especially our acquisitions their young supply solid margins if you adjust for the dilution of course a lot of things happening in the us and i'm sure we'll come back that on question on tariffs supply chain etc but we continue to do well in our segments as you know our us business is mainly built on aftermarket service replacement And we see that market continue to be stable. And of course, the U.S. is the same that Q1 is a smaller quarter as we move into Q2 and Q3 and waiting for the first heat wave to hit Alabama, Tennessee or Georgia. So all in all, I would say a very solid quarter again from the U.S. platform. so if you look at the the growth uh per quarter here over uh the last couple years of course continued to be very good and we can also see now we had organic growth for the last four quarters so we're happy about that in today's market i would say it's not a booming market but i think we continue to do well and it also shows um how the business model works in in uh in a little bit more uncertain times in the aftermarket and service replacement. So we look forward to to see the trajectory going forward, but very happy with this slide, of course. And same moving on to the margin. I mean, it's a stable margin on there. Our Q4 and Q1 are our smallest quarters. Of course, we expect that to pick up. But all in all, in all regions, stable, good in the US, stable in May, and we'll continue to make progress in the APAC region on there. So happy about the margin evolution in Q1. It is where it should be in today's market. And then wrapping up my part of the presentation, I believe, with just summarizing 16% growth, stable 4%, nice EBITDA drop through, of course, and then an EPS growth of 20%. So all in all, I would say a very good quarter from Bayref.

All right. Good morning, everyone. As usual, dive straight into the EBIT of 778 million in the quarter, which is up 14% compared to last year. Financial net in the quarter amounted to 131 million, same level as in Q4, and 10 million below Q1 last year on the back of lower rates, despite higher net debt levels. The way it's been now, base rates are approximately 1.5% lower compared to a year ago. On the tax side, we report 165 million in the quarter, which is 25% in line with last year. All in all, resulting in a net profit of 482 million compared to the 408 last year. And if you move over then to Our EPS, we report 0.94 crowns, which is 20% up compared to last year, which we think is a very nice number in combination of good growth and stable margins and good development on our financial expenses. On the cash flow side, we continue to deliver a solid operational cash flow of 450 million approximately, despite the seasonal buildup of 340 million in networking capital, which is in line with our expectations. And as Christopher mentioned here in the beginning, I still like to point out that Q1 is the quarter that we are building up inventory for the high season, as well as building AR as we went going into this high season. On the next slide here you see that we have now delivered positive cash flow for seven consecutive quarters and we are happy about the level in Q1 and this is where we should be now when we have a more stabilized stabilized supply situation compared to in 22 and 23. Finally, shortly on leverage, our leverage ratio measured as net debt to EBITDA, excluding leasing and pension, was sequentially stable at 1.8, which is 0.2 above last year. And net debt is 1.6 billion higher than a year ago than related to the acquisitions that we have closed over the last 12 months.

All right, to wrap it up, but thank you all to wrap things up. You heard most of it already. Good quarter in interesting times with stable organic growth, nice acquisition growth, good margins, stable cash flow in there. So I think we're very happy about the execution in all our regions. during the quarter and, of course, the last years as well. Long term, no major changes for us. Continue to be nice tailwinds, of course, here in the Maya with regulation. We see that also in Australia moving into New Zealand. In the US, you're starting the transition into a new refrigerant, the 812 or 454B. solutions that will come more and more during the year. We continue to develop the U.S. platform, opening branches, have another one coming online here in May, launching the private label heroes in the U.S. April, May. So all in all, we continue to focus on driving the value creation for the long term of BayerF and um it's working it's working well so with that uh um and may worth mention also on the acquisition side i'm sure we'll talk about in the q a continue to have a good pipeline there um for for 20 uh 25 and beyond so with that we're finished and opening up for uh q and a